COLGATE – PALMOLIVE (INDIA) Ltd - RESULTS FOR - Q2 FY 2013 - SEP 2012 - net sales up 18%;net profit up 46% YoY; EPS Rs.10.67 -very good performance - Industry competitive - but, future promising

COLGATE – PALMOLIVE (INDIA) LIMITED

RESULTS FOR Q2 FY 2013

SEP 2012

Financial Highlights
H1 2012-13 : 

Net sales for the half year ended September 30, 2012 are Rs. 1,509.8 Crore, a 19% increase over the same period of the prior year.

Net Profit After Tax for the half year is Rs 262.5 Crore, an 31% increase over the same period of the previous year.

2Q 2012-13 :

Net sales of Rs. 773.8 Crore for the second quarter of the financial year 2012-13, a 18% increase over the same quarter of the previous year.

Net profit After Tax for the quarter is Rs. 145.1 Crore with Earnings per Share of Rs. 10.67 per share as against Rs. 7.33 per share for the same quarter of the previous year. It is a 45.55% increase YoY.

Driving Growth

During the period, the Company achieved a volume growth of 10% over the same period of the previous year. The toothpaste volume market share has increased to 54.3% (Jan’12 - Sept’12) as against 52.3% for the same period of the previous year with strong volume growth of 11% through its flagship brands “Colgate Dental Cream”, “Colgate Active Salt”, “Colgate Total” , “Colgate Max Fresh”. The Company has also registered a strong growth momentum in the toothbrush category with volume market share of 39.0% (Jan’12-Sept’12)

The Mouthwash category continues its growth momentum with market share at 26.8% (Jan’12 –Sept’12).

Innovation

The Company launched a new toothpaste variant – Colgate Total Advance Whitening that works like a protective shield around your teeth and gums. The Company also recently launched Colgate Max Fresh Ice toothpaste that is infused with dissolvable cooling crystals that will give you a whole new dimension of freshness.

These launches were coupled with the new launches in the toothbrush category in the first quarter of the year, namely Colgate 360 Battery Toothbrush that has a dual action brush head which provides 20X more cleaning action than a manual toothbrush.

The Company had also launched Colgate Max Fresh toothbrush that has specially designed multi-height bristles that penetrate between teeth to clean away plaque and an advanced tongue freshener with 3 waves of multi-dimensional cleaning.

Dividend

In September 2012, the Company declared and paid its first interim dividend of Rs. 13 per share.

About Colgate-Palmolive

Colgate-Palmolive (India) Limited is India’s leading provider of scientifically proven oral care products with multiple benefits at various price points. The range includes toothpastes, toothpowder, toothbrushes and mouthwashes under the “Colgate” brand, as well as a specialized range of dental therapies under the banner of Colgate Oral Pharmaceuticals. These have become an essential part of daily oral hygiene and therapeutic oral care in India. The Company also provides a range of personal care products under the ‘Palmolive’ brand name.

Colgate has been ranked as India’s #1 Most Trusted Brand across all categories for four consecutive years from 2003 to 2007 and in 2011 by Brand Equity’s Most Trusted Brand Survey. It is the only brand to be in the top three from 2001-2011. Prior to this, Colgate was also rated as the #1 brand by the A&M – MODE Annual Survey for India’s Top Brands for eight out of nine years during the period 1992 to 2001. 

QUARTERLY RESULTS TABLE

(Rs.In Lakhs)

COLGATE	QE SEP12	QE JUN12	%DIF QoQ	QE SEP11	%DIF YoY
Income from Operations
Net Sales	77,377	73,608	5	65724	17.73
Other Operating Income	1,865	2,001	-7	1,718	8.56
Total Income	79,242	75,609	5	67442	17.5
Expenses
Material Cost	25,789	22,609	14	22401	15.12
Purchase of SIT	5,665	5,730	-1	5,517	2.68
Change in Inv.of FG,WIP&
stock-in-trade	929	1,633	-43	-1,551	-159.9
Employee Exp	5,430	6,242	-13	6,054	-10.31
Depreciation	1,060	1,051	1	1,057	0.28
Advertising	8,892	8,372	6	7,228	23.02
Other Exp	14,959	14,778	1	14869	0.61
Total Exp	62,724	60,415	4	55575	12.86
ProfitFrom Operations	16,518	15,194	9	11867	39.19
Other Income	1,487	1,122	33	1,082	37.43
ProfitBef.Fin.Costs	18,005	16,316	10	12949	39.05
FinanceCosts				55	-100
Profit Bef.Tax	18,005	16,316	10	12894	39.64
Tax Exp	3,497	4,574	-24	2,926	19.51
Net Profit	14,508	11,742	24	9,968	45.55
Paid-up Equity	1,360	1,360	0	1,360	0
Face value:	Rs.1/sh
Reserves
E P S	10.67	8.63	24	7.33	45.57

HALF YEARLY TABLE

(Rs.In Lakhs)

COLGATE	HYE SEP12	HYE SEP11	%DIF	FY 12
Income from Operations
Net Sales	150,985	126,834	19	262,385
Other Operating Income	3,866	3,382	14	6,938
Total Income	154,851	130,216	19	269,323
Expenses
Material Cost	48,398	43179	12	89,387
Purchase of SIT	11395	9,266	23	19970
Change in Inv.of FG,WIP&
stock-in-trade	2,562	-1,411	-282	-4,334
Employee Exp	11672	11,037	6	21561
Depreciation	2,111	1,937	9	3,931
Advertising	17264	13,569	27	26296
Other Exp	29,737	28300	5	58,591
Total Exp	123,139	105,877	16	215,402
ProfitFrom Operations	31,712	24339	30	53,921
Other Income	2,609	2,465	6	5,069
ProfitBef.Fin.Costs	34,321	26,804	28	58990
Profit Bef.Tax	34,321	26707	29	58,839
Tax Exp	8,071	6,695	21	14192
Net Profit	26,250	20012	31	44647
Paid-up Equity	1,360	1,360	0	1,360
Face value:
Reserves				42,179
E P S	19.3	14.71	31	32.83

Notes

Net Sales for the quarter and half year ended September 30, 2012 increased by 18% and 19%, respectively, over the same period of the previous year.

Net Profit after Tax for the quarter and half year ended September 30, 2012 increased to Rs. 14,508 Lacs (Up 46%) and Rs. 26,250 Lacs (Up 31%), respectively, from Rs. 9,968 Lacs and Rs. 20,012 Lacs for similar periods of the previous year.

The Company declared a First Interim Dividend of Rs. 17,679 Lacs (Rs. 13 per share) on September 24, 2012, which was paid on October 19, 2012.

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